USD/JPY Price Forecast – US Dollar Chopped Back and Forth

The USD/JPY pair has gone back and forth during the trading session on Thursday as we are hanging about the 50 day EMA, and of course the ¥110 level. Beyond that, the market has been consolidating for a while, so I do not necessarily think that this is a market that is looking for some type of catalyst, probably something that happens on Friday with the Non-Farm Payroll figures coming out. If we get through that and are still here, then we are simply hanging about this area until a bigger catalyst comes along. That being said, this is a market that has been difficult to get overly excited about for a while, and it is possible that may continue to be the case.

USD/JPY Video 03.09.21

When you look at the pair, you can see that there is a significant amount of resistance near the ¥110.75 level bone, and the ¥109 level underneath. Ultimately, this is a market that is essentially stuck at this point and has nowhere to be. However, if we can break one of these levels, then it is possible that we can start trading for more of a relatively extended move. Because of this, I think the market is going to continue to be very unimpressive until we get some type of huge impulsive candlestick. Once that happens, then we could start playing for the next major move towards either ¥112 to the upside, or the 200 day EMA, or maybe even as low as the ¥107.50 level underneath. Regardless, I suspect that we need to see more traders coming back from holiday to make this move happen.

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